Crafting a state budget is never an easy process and this year was especially difficult with drafting a budget amid the COVID-19 pandemic. Prior to the COVID-19 emergency, Iowa was in a strong economic position with healthy and stable revenue growth. By March, all of this changed as the pandemic …
Continue reading “Spending Restraint: A Conservative Budget”
Iowa, just as with other states, has become dependent on the federal government for support. Iowa’s $7.6 billion state budget is dependent on the equivalent in federal aid to help fund numerous programs. Through these funds, the federal government can impose both funded and unfunded mandates on the states. This …
Iowa’s economy is reopening, but the economic impact of COVID-19 (coronavirus) is still uncertain. Iowa’s April unemployment rate was 10.2 percent because of business closures resulting from social distancing policies used to mitigate the virus. The economic impact of COVID-19 is still a fluid situation. One of the uncertainties is …
Do you know that the income taxes you pay to the state of Iowa makes up the majority of the General Fund budget? Iowa’s General Fund is supported not just by income taxes, but also sales and a variety of other taxes, fees, and revenue sources. In addition, the budget …
Iowa’s economy is in a recession marked by high unemployment, not seen since the Great Depression of the 1930s. Iowa’s economic crisis is a result of the coronavirus (COVID-19), which has forced an economic shutdown of the state. Low commodity prices are also having a detrimental impact on the farming …
David Kennedy, prominent historian and Stanford University professor, in an interview with Governing discussed the COVID-19 (coronavirus) emergency in relation to the Great Depression. In that interview he stated, “[President] Calvin Coolidge said that if the federal government went out of business, the average person wouldn’t notice for six months, except for the post office. Now, the federal government is …
The coronavirus (COVID-19) is frightening enough, but the economic consequences of the virus makes the situation even more terrifying. As a result of COVID-19, thousands of Iowans are filing for unemployment and businesses across the state are trying to fend off bankruptcy. The current “cure” or deterrent to stopping the …
The threat of a national economic recession hangs over the United States as a result of the health emergency caused by the COVID-19 (coronavirus) pandemic. While much attention has been paid to what lawmakers in Washington D.C. have done, states and localities are also bracing for an economic recession. A …
North Carolina is one of the state’s best prepared to deal with the budget challenges from the new coronavirus outbreak. It also represents the gold standard for state tax reform, and the connection between these two should not be lost. The Tar Heel state has successfully reduced tax rates, while …
In our current situation, prudence is the best fiscal policy. The economic impact of COVID-19 or the coronavirus is still uncertain. This national health emergency has resulted in business closures, unstable markets, and uncertainty as to when Americans can return to normalcy. Prior to COVID-19, the national economy, …
Reforming a state tax code in order to provide relief, economic growth, and create a more competitive economic climate is difficult. A major reason for this difficulty is tax rate reduction is in direct conflict with numerous policy interests that demand new or additional spending. Rather than reducing rates and …
